Posted March 09, 2020 10:50:24Canada’s economic growth slowed sharply in the second quarter, as the government and the Bank of Canada kept interest rates at record lows.
But economists say the outlook for the economy is much brighter than most Canadians thought it would be.
The Canadian economy grew by just 1.2 per cent in the first quarter, a figure that is well below economists’ expectations.
This was down from the first three months of the year, when it grew by 6.1 per cent.
Economists expect the economy to grow at an annual rate of 2.6 per cent by 2021-22.
The economy is expected to grow by 1.8 per cent this year and 2.2 cent in 2021-23, according to the Canadian Centre for Policy Alternatives, a left-leaning think-tank.
The Bank of America Merrill Lynch economists expect growth of 3.1 to 3.4 per cent, a record.
Economies growth is still expected to accelerate in the third quarter, which is forecast to be weaker than the first two quarters, as it is the third time in four years the economy shrank.
This is a slower growth rate than many economists had expected, but economists say there are reasons to be optimistic.
They believe that Canada’s economy is growing in the way it has been in the past, and that the economy has been able to absorb the sharp drop in oil prices, which has led to a boost in exports.
The fall in the value of oil prices has led some investors to shift away from commodities, which will make it easier for Canada to continue growing.
But the Canadian dollar has also been rising against other major currencies, which have also boosted the Canadian budget deficit, which in turn has helped stimulate the economy.
The Bank of the United States recently raised its economic growth forecast for Canada, saying the country is on track to grow 1.7 per cent next year.
The bank added that Canada is currently on track for a 3.2-per-cent expansion in 2021.
The economists at the Canadian Federal Reserve expect Canada to be the fastest growing major economy in the world by 2021.
But the bank said this growth will depend on the health of the Canadian housing market.
The central bank has been keeping a close eye on Canada’s housing market, with its latest forecasts saying it would likely be the country’s fastest growing housing sector in 2020.